Fisher & Paykel Healthcare Corporation Limited · NZX:FPH
Fisher & Paykel Healthcare — FY2010 Earnings Presentation
11 slides from Fisher & Paykel Healthcare's earnings presentation, May 2010
Slide 1: Full Year Update FY2010
FULL YEAR UPDATE FY2010 May 2010 1 Investment Highlights • Leading player in respiratory and OSA • Consistent growth strategy • Estimated US$3.0+ billion and growing market opportunity • High level of innovation • Global presence • Strong financial performance NZSX:FPH, ASX:FPH 2
Slide 2: Operating Results US$ and NZ$
Operating Results US$ FY10 (12 months to 31 March) %Revenue US$M % pcp Operating revenue 100% 341.5 +14% Gross profit 53.9% 184.1 +14% Other income 0.8% 2.9 SG&A 27.3% 93.3 +20% R&D 7.0% 23.9 +30% Total Operating Expenses 34.3% 117.2 +22% Operating Profit 20.4% 69.8 +4% Profit after Tax 14.2% 48.6
Slide 3: Markets and Products
Markets and Products Distributed • Respiratory & Acute Care /Other – Heated Humidification 5% – Respiratory Care OSA 47% – Neonatal Care – Surgery • Obstructive Sleep Apnea – Masks – Flow Generators Respiratory & Acute – Humidifiers 48% Revenue by Product Consumable and accessory products 12 month
Slide 4: Respiratory/Humidification Systems; Single-use Respiratory Components
Respiratory/Humidification Systems • MR850 Respiratory Humidifier System – invasive ventilation, O2 therapy and non-invasive ventilation • MR810 Respiratory Humidifier System – entry level system – ventilation and O2 therapy – optional heated breathing circuit • Infant CPAP System – proprietary bubb
Slide 5: Expanding Opportunities; Respiratory & Acute Care Update
Expanding Opportunities Invasive Ventilation Non-invasive Ventilation O2 Therapy Humidity Therapy Surgical CO2 COPD Humidity Therapy 9 Respiratory & Acute Care Update • 11% operating revenue growth US$, 17% constant currency in 2H • New applications generated 27% of consumables revenue, est. 20%+ un
Slide 6: Obstructive Sleep Apnea; CPAP Systems
Obstructive Sleep Apnea • Temporary closure of airway during sleep • Can greatly impair quality of sleep, leading to fatigue; also associated with hypertension, stroke and heart attack • Estimated US$2.2+ billion worldwide market, growing 10-15% • Potentially 50-60 million affected worldwide • Most
Slide 7: Mask Range; OSA Update
Mask Range Four interface categories • Nasal Masks – patented glider – FlexiFit™ technology – New Zest Petite, Plus • Full Face Mask – under chin seal – patented glider – FlexiFit™ – new Forma™ with Flexifoam™ • Oral Mask – Oracle™ oral interface • Nasal Pillows Mask – very light – Opus 360™ 13 OSA
Slide 8: Research & Development; Manufacturing
Research & Development • 295 engineers, scientists, physiologists* • R&D expenses increased 25% in NZ$ • 7.0% of operating revenue • Product pipeline includes – flow generators – humidifier controllers – compliance monitoring solutions – masks – respiratory consumables • 82 US patents, 87 US pending
Slide 9: Global Presence; Revenue Growth US$
Global Presence • Direct/offices – hospitals, home care dealers Asia Pacific /Other – sales/support offices in North America, 21% Europe, Asia, South America, Middle East and Australasia – 500 staff in 30 countries – ongoing international expansion, new distribution centres, Japan, Canada Europe • D
Slide 10: Balance Sheet; Outlook FY2011
Balance Sheet • NZ$137.5M operating cashflow • NZ$77.2M net debt • NZ$293.2M total shareholders equity • NZ$475.1M total assets • 41% pre-tax return on equity, 23% on total assets • NZ$550M of hedging in place – FY11 US$ 67% @ 0.60, € 70% @ 0.45 • US$66M hedge book close-out, NZ$32M realised 19 Outl
Slide 11: Growth Drivers
Growth Drivers Consistent strategy • Continue to improve existing product lines • Develop complementary products/consumables • Target new medical applications – e.g. COPD, NIV, O2 therapy, surgery • Increase international presence 21
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